ABC Ltd., a manufacturing company, has recently implemented a new ERP system for processing all financial transactions. During the audit, the auditors notice that: some User IDs are being shared among employees. It is no

Audit Trail is a chronological record that captures all transactions and activities processed within a computerized accounting system including creation, modification, and deletion of entries. Any change to data including creating new data, updating or deleting data must be recorded. Records maintained as audit trail may include the following information: when changes were made i.e. date and time (timestamp). who made the change i.e. User Id. what data was changed? The Audit Trail enables users, auditors, and management to trace every financial transaction from its origin to its final recording in the financial statements. It facilitates verification of the accuracy and completeness of accounting records and provides evidence supporting financial transactions and accounting entries. The Audit Trail also provides documentation required during audits, investigations, and regulatory inspections. The Audit Trail plays an important role in strengthening internal controls, detection of errors and frauds, transparency, creating responsibility by linking transactions and modifications to specific users and discouraging unauthorized activities and fraudulent practices.